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Guarantees | 9 Months Ended
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Sep. 30, 2020
Guarantees [Abstract] |
Guarantees | 19. Guarantees The Company periodically enters into transactions with customers that provide for buyback commitments. The Company evaluates each agreement at inception to determine if the customer has a significant economic incentive to exercise the buyback option. If it is determined that the customer has a significant economic incentive to exercise that right, the revenue is deferred and the agreement is accounted for as a lease in accordance with Accounting Standards Codification Topic 842 – “Leases” (“Topic 842”). If it is determined that the customer does not have a significant economic incentive to exercise that right, then revenue is recognized when control of the product is transferred to the customer. The revenue deferred related to buyback obligations accounted for under Topic 842 included in other current and non-current liabilities as of September 30, 2020 and December 31, 2019 was $32.8 million and $34.1 million, respectively. The total amount of buyback commitments given by the Company and outstanding as of September 30, 2020 and December 31, 2019 was $23.6 million and $17.3 million, respectively. These amounts are not reduced for amounts the Company would recover from the repossession and subsequent resale of the cranes. The buyback commitments expire at various times through 2030. The Company also has various loss guarantees with maximum liabilities of $26.2 million and $11.3 million as of September 30, 2020 and December 31, 2019, respectively. These amounts are not reduced for amounts the Company would recover from the repossession and subsequent resale of the cranes. In the normal course of business, the Company provides its customers a warranty covering workmanship, and in some cases materials, on products manufactured by the Company. Such warranties generally provide that products will be free from defects for periods ranging from 12 months to 60 months. If a product fails to comply with the Company’s warranty, the Company may be obligated, at its expense, to correct any defect by repairing or replacing such defective products. The Company provides for an estimate of costs that may be incurred under its standard warranty period at the time product revenue is recognized. These costs primarily include labor and materials, as necessary, associated with repair or replacement. The primary factors that affect the Company’s warranty liability include the number of units shipped and historical and anticipated warranty claims. As these factors are impacted by actual experience and future expectations, the Company assesses the adequacy of its recorded warranty liability and adjusts the amounts as necessary. The revenue deferred related to extended warranty periods included in other current and non-current liabilities as of September 30, 2020 and December 31, 2019 was $7.2 million and $8.3 million, respectively. Below is a table summarizing the warranty activity for the three and nine months ended September 30, 2020 and 2019:
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
Balance at beginning of period |  | $ | 60.1 |  |  | $ | 51.3 |  |  | $ | 60.6 |  |  | $ | 47.8 |
Accruals for warranties issued during the period |  |  | 8.2 |  |  |  | 8.9 |  |  |  | 24.3 |  |  |  | 29.0 |
Settlements made (in cash or in kind) during the period |  |  | (9.6 | ) |  |  | (9.4 | ) |  |  | (26.2 | ) |  |  | (25.9 | )
Currency translation |  |  | 1.1 |  |  |  | (0.9 | ) |  |  | 1.1 |  |  |  | (1.0 | )
Balance at end of period |  |  | 59.8 |  |  |  | 49.9 |  |  |  | 59.8 |  |  |  | 49.9 |
Long-term warranty reserve |  |  | (13.7 | ) |  |  | (8.5 | ) |  |  | (13.7 | ) |  |  | (8.5 | )
Product warranties |  | $ | 46.1 |  |  | $ | 41.4 |  |  | $ | 46.1 |  |  | $ | 41.4 |

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- Definition The entire disclosure for each guarantee obligation, or each group of similar guarantee obligations, including (a) the nature of the guarantee, including its term, how it arose, and the events or circumstances that would require the guarantor to perform under the guarantee; (b) the maximum potential amount of future payments (undiscounted) the guarantor could be required to make under the guarantee; (c) the current carrying amount of the liability, if any, for the guarantor's obligations under the guarantee; and (d) the nature of any recourse provisions under the guarantee, and any assets held either as collateral or by third parties, and any relevant related party disclosure. Excludes disclosures about product warranties. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 460 -URI http://asc.fasb.org/topic&trid=2155896 + Details
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